INVISIO: In the middle of good growth momentum - ABG

Sales and orders grew nicely in Q4, but comps are getting tougher
We stick to ~15% annual growth ahead, EBIT cut 2-4% on lower GM
Several growth drivers ahead, share at 34x 2024e EV/EBIT


Q4 delivered growth despite tough comps

INVISIO delivered another solid quarter in Q4, with organic sales growth of 13% and order intake up 1% y-o-y, despite tough comps from last year. Adjusting for the SEK 7m impairment on a project development write-down charged in the quarter, adj. EBIT was entirely in line with company-collected consensus, for an adj. EBIT margin of 20%. Looking ahead, INVISIO has not seen a slowdown in activity from the strong growth in 2022-23, which was mainly driven by pent-up demand from the pandemic weakness and not yet benefitting from increased military budgets. The latter is now guided to support growth from the end of 2024. We have raised questions about potential early orders from military organisations ahead of proposed budget increases to safeguard some personnel equipment in the case of an immediate need of use. INVISIO has not seen this effect from its clients, which is encouraging, in our view, and shows that the growth trend should continue. However, we will keep an eye on comments around this in the case of slowing growth rate in 2024.

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